Optimal ETFs and Mutual Funds for Taxable and Non-Taxable Accounts

[refi]

Please delete this if already the same post exists, I feel like it should be somewhere here, but couldn't find it easily. Found some reddit posts, but they meander a bit.

I just FIRE'd and I want to simplify my accounts to ETFs/Mutual Funds, here are some notables:

• My current real estate rental income covers 2x my living expenses, so I don't do any equities withdrawals
• Already holding a lot of liquid funds in HYSA/MMs - about 10 years of living expenses, about 10-12% of NW
• I had some target date funds, but thinking a bit more, since I don't need to draw down on my accounts, I'm going just put 100% in equities
• I feel international is already built into broad market US funds.

Actions I'm thinking to take:

• For my tax-advantaged rollover IRA, I will do a mix of FZROX (50%) and FXIAX (50%). I'm thinking I could just do one or the other or FSKAX, but in the end, I felt like I was splitting hairs.
• For my taxable accounts, I was just doing FZROX purchases, but reading more, it seems it's less tax efficient and non-transferable, so I'm thinking to just do buys in VTI or IVV.

Questions: Is the above tax-advantage distribution about right? For taxable, VTI or IVV better than FZROX?


TIA. Sorry, if discussed to death already or too narrow.

 

[Lsbcal]

First you need to specify what those ticker symbols represent. You don't want everyone looking at this to have to look them up.

For tax advantaged FI you might consider buying TIPS individual bonds. Perhaps maturing to cover your RMD years. TIPS at 2% are a pretty good deal historically.

 

[OldShooter]

• I feel international is already built into broad market US funds.

This is a popular theory, but let me ask a question: Would you consider a portfolio exclusively holding non-US stocks like Shell, InBev, Toshiba, Nestle, ArcelorMittal, Cemex, Nokia, Toyota, Novartis, etc. to provide a good representation of the US market?

 

[TheWizard]

The OP's link about tax efficiency is not particularly relevant for broad index funds such as FZROX, or even sector index funds such as QQQ or VGT.

The issue is to avoid Capital Gains Distributions in your taxable account, and you do that by not holding any Managed funds, only index funds, whether Mutual funds or ETFs.

You can always check the distribution history of a fund for the last decade to see if any CGDs were paid...

 

[Route246]

Personally, I'm a 500 guy and am focusing on trying to be 100% in the Vanguard equivalent of FXIAX (VFIAX expense ratio 0.04).

I used to have QQQ and VTI thingies but now focus solely on the 500 variants of funds and ETF.